UNITED STATES OF AMERICA
| ORDER INSTITUTING ADMINISTRATIVE PROCEEDINGS PURSUANT TO SECTION 15(b) OF THE SECURITIES EXCHANGE ACT OF 1934 AND SECTION 203(f) OF THE INVESTMENT ADVISERS ACT OF 1940, MAKING FINDINGS, AND IMPOSING REMEDIAL SANCTIONS|
The Securities and Exchange Commission ("Commission") deems it appropriate and in the public interest that public administrative proceedings be, and hereby are, instituted pursuant to Section 15(b) of the Securities Exchange Act of 1934 ("Exchange Act") and Section 203(f) of the Investment Advisers Act of 1940 ("Advisers Act") against Stephen A. White ("White" or "Respondent").
In anticipation of the institution of these proceedings, Respondent has submitted an Offer of Settlement (the "Offer") which the Commission has determined to accept. Solely for the purpose of these proceedings and any other proceedings brought by or on behalf of the Commission, or to which the Commission is a party, and without admitting or denying the findings herein, except as to the Commission's jurisdiction over him and the subject matter of these proceedings, and the findings contained in Section III.3 below, which are admitted, Respondent consents to the entry of this Order Instituting Administrative Proceedings Pursuant to Section 15(b) of the Securities Exchange Act of 1934 and Section 203(f) of the Investment Advisers Act of 1940, Making Findings, and Imposing Remedial Sanctions ("Order"), as set forth below.
On the basis of this Order and Respondent's Offer, the Commission finds that:
1. White has been associated with Stephens, Inc. ("Stephens"), a registered broker-dealer and a registered investment adviser, since December of 1999. Before becoming associated with Stephens, White was associated with Lovett, Underwood, Neuhaus & Webb, Inc., from November 1989 until September 1990, at which time he became associated with Everen Securities, Inc., where he remained until joining Stephens in 1999. White, 36 years old, is a resident of Dallas, Texas.
2. Hispanic Broadcasting Corporation ("Hispanic") and Univision Communications Corporation ("Univision") are both reporting companies whose stock is registered with the Commission under Section 12(b) of the Exchange Act and which are publicly traded on the NYSE. On June 12, 2002 a public announcement was made that Univision would acquire Hispanic in a stock for stock transaction ("the Acquisition").
3. On October 9, 2003, a final judgment was entered by consent against White, permanently enjoining him from future violations of Section 10(b) of the Exchange Act and Rule 10b-5 thereunder, in the civil action entitled Securities and Exchange Commission v. Stephen A. White, et al., Civil Action Number 3:03-CU-2351-G, in the United States District Court for the Northern District of Texas, Dallas Division.
4. The Commission's complaint alleged that, in connection with the sale and purchase of securities, White misappropriated material, nonpublic information regarding the Acquisition, which he had received from a corporate insider with whom he had a fiduciary relationship and to whom he owed a duty of trust and confidence. Prior to the public announcement of the acquisition, White recommended purchasing the securities of Hispanic to at least three individuals. Two of these individuals acted on his recommendation and purchased the stock.
In view of the foregoing, the Commission deems it appropriate and in the public interest to impose the sanctions specified in Respondent's Offer.
Accordingly, it is hereby ORDERED:
Pursuant to Section 15(b)(6) of the Exchange Act and Section 203(f) of the Advisers Act, that Respondent be, and hereby is barred from association with any broker, dealer, or investment adviser, with the right to reapply for association after four years to the appropriate self-regulatory organization, or if there is none, to the Commission;
Any reapplication for association by the Respondent will be subject to the applicable laws and regulations governing the reentry process, and reentry may be conditioned upon a number of factors, including, but not limited to, the satisfaction of any or all of the following: (a) any disgorgement ordered against the Respondent, whether or not the Commission has fully or partially waived payment of such disgorgement; (b) any arbitration award related to the conduct that served as the basis for the Commission order; (c) any self-regulatory organization arbitration award to a customer, whether or not related to the conduct that served as the basis for the Commission order; and (d) any restitution order by a self-regulatory organization, whether or not related to the conduct that served as the basis for the Commission order.By the Commission.
Jonathan G. Katz
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